[Congressional Record (Bound Edition), Volume 157 (2011), Part 6]
[Extensions of Remarks]
[Page 8633]
[From the U.S. Government Publishing Office, www.gpo.gov]




    INTRODUCING THE ``TAX PARITY FOR HEALTH PLAN BENEFICIARIES ACT''

                                 ______
                                 

                           HON. JIM McDERMOTT

                             of washington

                    in the house of representatives

                         Thursday, June 2, 2011

  Mr. McDERMOTT. Mr. Speaker, one of the fundamental principles of our 
tax system is that similar taxpayers are taxed the same. Confidence in 
our tax system depends on the fair and equitable treatment of our 
citizens and businesses.
  Today, I am re-introducing the ``Tax Parity for Health Plan 
Beneficiaries Act''--a bill that will correct a disparity in the tax 
code that results in unfair taxes on American businesses and their 
employees.
  More than 80 percent of America's most successful companies extend 
health plan benefits to the domestic partners or non-spouse dependents 
of their employees. These companies are, in increasing numbers, making 
the right business decision to make their health plans more inclusive 
of the diversity in their employees. American businesses understand 
that by providing their employees with health security on an equitable 
basis helps them attract and retain the best people, and in doing so, 
have surpassed the government in the pursuit of equality.
  Unfortunately, being ahead comes at a cost. On average, a worker who 
receives these extended benefits pays $2,000 more in federal taxes than 
their married co-workers. Also, businesses must pay additional payroll 
taxes for deciding to provide their employees with equal benefits.
  In the past, the federal government has led America when it comes to 
equal treatment under the law. On this issue, the federal government 
has fallen behind. We owe it to the American people to fix the tax 
code, so that the American people and their businesses can be sure that 
their government is still committed to ensuring equality for all.
  Mr. Speaker, I am happy to be introducing this bill with colleagues 
from both sides of the aisle. This highlights the importance of 
correcting this wrong in existing tax law.

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